World stocks climb after Wall Street rallies on hopes for lower interest
rates
[November 26, 2025] By
ELAINE KURTENBACH
BANGKOK (AP) — Shares in Europe and Asia advanced on Wednesday after
benchmarks on Wall Street surged on hopes the Federal Reserve will soon
opt to cut interest rates.
The future for the S&P 500 gained 0.3%, while that for the Dow Jones
Industrial Average was up 0.2%.
In early European trading, Germany's DAX gained 0.2% to 23,500.98, while
the CAC 40 in Paris also rose 0.2%, to 9,623.22. Britain's FTSE 100
edged 0.1% higher.
In Asia, Tokyo's Nikkei 225 rose 1.9% to 49,559.07 in a broad rally that
encompassed major exporters and technology shares. However, shares in
Kioxia dropped 14.9% on reports that Bain Capital plans to sell $2.3
billion of the computer memory maker’s shares.
In South Korea, the Kospi gained 2.7%, to 3,960.87, helped by a 3.5%
gain for Samsung Electronics, the market's biggest heavyweight. Computer
chip maker SK Hynix climbed 1%.
Taiwan's Taiex surged 1.9%.
Chinese markets were mixed.
Hong Kong's Hang Seng rose 0.1% to 25,928.08 and the Shanghai Composite
index slipped 0.2%, to 3,864.18.
Chinese e-commerce and technology giant Alibaba fell 1.9%. Its
U.S.-traded shares fell 2.3% on Tuesday after its profit fell short of
forecasts, though it reported stronger revenue than analysts had
expected for the latest quarter.
Australia's S&P/ASX 200 climbed 0.8% to 8,606.50. In New Zealand, the
S&P/NZX 50 added 0.6% after the central bank cut its official cash rate
to 2.25% from $2.5%.
U.S. markets will have a shortened trading week due to the Thanksgiving
holiday, closing on Thursday and opening for shorter hours on Friday.
On Tuesday, the S&P 500 rose 0.9% and the Dow Jones Industrial Average
rallied 1.4%. The Nasdaq composite gained 0.7%.
Easier interest rates can give particularly big boosts to smaller
companies, because many of them need to borrow to grow. The Russell 2000
index of the smallest U.S. stocks jumped 2.1% to lead the market.
[to top of second column] |
A currency trader watches monitors near a screen showing the Korea
Composite Stock Price Index (KOSPI) at the foreign exchange dealing
room of the Hana Bank headquarters in Seoul, South Korea, Wednesday,
Nov. 26, 2025. (AP Photo/Ahn Young-joon)
 Mixed economic data left traders
betting on a nearly 83% probability that the Fed will cut in
December, according to data from CME Group.
Shoppers bought less at U.S. retailers in September than economists
expected, while confidence among U.S. consumers worsened by more in
November than expected, signals the economy could use help from
lower interest rates.
Easier rates can boost the economy by encouraging households and
companies to borrow more and investors to pay higher prices for
investments than they would otherwise.
Another report said U.S. inflation at the wholesale level was a
touch worse in September than expected, but a closely tracked
underlying trend was slightly better. Lower interest rates can
worsen inflation, and higher prices are the main reason the Fed has
been holding back on rate cuts.
Later Wednesday, the U.S. was due to release more data that had been
delayed by the six-week long government shutdown.
The Fed has already cut rates twice this year in hopes of shoring up
the slowing job market.
In other dealings early Wednesday, U.S. benchmark crude oil gained 5
cents to $58.00 per barrel. Brent crude, the international standard,
picked up 8 cents to $61.88 per barrel.
The U.S. dollar rose to 156.46 Japanese yen from 156.06 yen. The
euro rose to $1.1575 from $1.1569.
All contents © copyright 2025 Associated Press. All rights reserved
 |
